Would Be Developer Tripped Up By Interest Tracing Rules
The Tax Court indicated that the renovations would be considered to be funded by the mortgage rather than being funded by the proceeds of the sale of the other property. If someone had been paying attention to the tracing regulations, that problem might have been overcome, but that is easier said than done.
It is troubling that there was no attempt to apply the Cohan rule to allow some of the interest as investment interest.
War Tax Resisters – Don’t Call Them Frivolous
The policy of the IRS set forth on its website is to declare that such a practice is “frivolous.” We contend that Elizabeth’s practice is protected by the Free Exercise of Religion Clause of the First Amendment. We contend that the IRS is required by the Religious Freedom Restoration Act of 1993 to respect and accommodate the practice.
Follow Me
Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.